IBM and Pace Automation, under a partnership will offer ‘RetailSmart’ - a fully integrated solution to enable local Kirana stores to become e-commerce ready.Bangalore: IBM and Pace Automation, a solution-as-a-service company under a tie-up will offer ‘RetailSmart’ - a fully integrated solution to enable local Kirana stores to become e-commerce ready.

The solution offered to local kirana stores over IBM Cloud will allow them to deliver a convenient online shopping experience to their consumers and can also pay safely using a convenient payment mode.

The current base of kirana stores in India, according to industry and media estimates is pegged to be around 15 million. However, these stores face stiff competition from organized retail and e-commerce companies. E-commerce players with attractive product presentations, discounts and cash back offers have pulled consumers to shop online as it also help save time and money.

On top, the recent demonetization drive have impacted these kirana stores and have been forced to adopt technology and go digital.

To address this situation, Pace Automation has built a ‘RetailSmart’ solution on IBM Cloud to enable kirana stores to brace digital. The solution will enable a kirana store automatically becomes a part of the SmartKirana Network, hosted on IBM Cloud from Chennai datacentre.

The network digitally interconnects all kirana stores across India and customers can easily access this network in the neighborhood via smartphone based Android app or through a web portal (www.smartkirana.in) as well.

The service will be available in Karnataka, Tamil Nadu, Kerala and national capital region (NCR) and will be gradually expanded to other states and rural areas via network of distributors.

The solution will also give these stores an immediate access to ecosystem partners in banking, communication, insurance, payment processing and national product data repository.

On implementation of the solution the kirana stores will able to automate business processes like billing, stock management and accounting with increased efficiency and profitability.

They will able to receive online orders from customers through a web portal or smartphone app and will also empower them accept all credit / debit cards, mobile wallets, Aadhar enabled payments or UPI, irrespective of the value of the transaction thus making the transactions cashless.

Moreover, it allows all transactions linked through the system creating transaction transparency, which is also an integral aspect of GST compliance. Besides the sales, it also provides micro banking and value added services to customers generating additional revenue streams for the kirana stores.

According to S G Chandru, Pace Automations’ Chairman and Mentor, this project’s objective is to digitally empower kirana stores and help them scale business by adding new revenue streams.

“We have tied up with series of partners to create a successful business ecosystem for kirana merchants. Our target is to bring 1,50,000 local grocery stores to the network in the next 3 years and allow customers to order their groceries online from the nearest Kirana shop,” said Chandru.

“IBM is our technology partner that enabled us to develop and seamlessly deploy the RetailSmart solution on the cloud, which connects all the kirana stores across the country through its digital network and communication partner ecosystem,” added Chandra.

This project is seen as a win-win for all the stakeholders involved right from the kirana stores, manufacturers and suppliers of goods and also the customers or end-users.

"We are excited about partnering with PACE in their efforts to digitize the unorganized Kirana stores and transform them into organized retail, leveraging the IBM Cloud and Cognitive solutions,” said Mukul Mathur, VP, Global Business partners and CSI, IBM India/South Asia.

“This tie-up is an extension of IBM’s commitment to the ecosystem and a great example of how our joint solutions reach deep into the SME segment making the vision of Digital India real,” added Mathur.

The IBM Cloud enabled solution is fully end-to-end- integrated, consisting of a custom-built hardware plus an intuitive application software and backend / payment processing engines. A physically separated disaster recovery (DR) system is also in place to ensure business continuity (BC) for these kirana stores.